EU Tariffs Code EU Tariffs Code

- Code now in comitology process

- Member States will next meet in April

  - Inter-services consultation not due to start until late April
  - Not expected to have final TAR NC for April
  - April now a pre-comitology meeting
  - Impact assessment still not approved

- Formal comitology meeting in June

  - Member States could vote on English text (requires unanimous MS approval) or could vote to have additional meeting EU Tariffs Code

- Additional meeting (if required) likely to be in September/October

- EC’s aim is to finish Comitology prior to Madrid Forum in October

- Once text passed by Member States then governance process between EU Council, EU Parliament and EC (this takes several months)

- Possible “entry into force” in January 2017 (if code approved by MS in June)

  - Could be delayed until April 2017 if 2nd comitology meeting required Feedback at Informal MS meeting held 10 March

- MSs went Article by Article through the TAR NC

- Text difficult to read

- Not clear what problem is being solved and would welcome the respective explanation in the Impact Assessment

Five main issues for April meeting:

1. ACER opinion (main point of contention)
2. Implementation period
3. Asset cost split
4. Storage
5. Interruptible pricing EU Tariffs Code – ACER review and Guidance

- Concerns by TSOs over ACER’s role post consultation on proposed charging regime

  - ACER to review consultation document plus summary and evaluation of consultation responses
  - ACER can make recommendations to which NRA must take “utmost account”
  - Concerns that this does not align with competence of ACER as outlined in Regulation (EC) 713/2009
    - In addition, ACER’s ability to request information from NRA and requirement for NRA to respond within 30 days not foreseen by Third Energy Package.

- ACER review will slow down implementation process

- ENTSOG believes ACER’s should have monitoring and reporting role instead EU Tariffs Code – ACER review and Guidance

- TAR NC has obligation on ACER to analyse regulatory approaches applied in EU and produce “Guidance Document”

  - Aims at producing transparency on allowed revenues

- Concerns by TSOs that this goes beyond scope of TAR NC

  - Code is about harmonising allocation of costs to users and **not** about harmonising the setting of allowed revenues.
  - ENTSOG view is that ACER does not have the competence for this task

- Since setting allowed revenue is outside of scope of TAR NC, ENTSOG supports the deletion of this article. EU Tariffs Code - implementation

- At March Informal MS meeting

  - Different application dates dependent of type of obligation
  - Default applicable date is 1 January 2018
  - Publication requirements as of entry into force
  - Change to reference price methodology linked to regulatory period
    - Likely GB deadline is between June - October 2019 to start process

- Text considered to be too complicated

  - Different application dates for different Member States
  - Linkage between RPM and other parameters (e.g. multipliers) EU Tariffs Code - implementation

- EC has subsequently proposed change for applicable date for **all of obligations in code** to be **17 months** after entry into force.

- Transitional arrangements and mitigating measures remain deleted.

- The proposed revised implementation timescale will be too short for a proper and consistent implementation in GB regime.

  - National Grid and ENTSOG pushing back against this revised implementation period.
  - ENTSOG proposing **24 months** implementation. EU Tariffs Code – ENTSOG Main concerns

ENTSOG to develop position paper

- Implementation timescales

- ACER consultation review

- ACER revenue calculation guidance (associated transparency)

- Financial stability of TSOs

- Asset cost split

- Within-day pricing: removal of flat rate

- Storage

- Cost allocation test

- Code focus on short term shipper behaviour

- CWD as the counterfactual

- Specific nature of interconnectors

- Report on specific capacity products

- Implementation monitoring article

- Smaller issues

  - List of non-transmission services
  - Simplified model EU Tariff Code and the GB Charging Review

- Opportunity to improve GB Framework as a key driver

  - Consider EU compliance in any development and how options fit with GTCR policy
  - Chance to drive improvements with industry not just deliver EU Compliance (details discussed in NTSCMF)
  - Industry workshop held 22 March Incremental capacity amendment to CAM Incremental capacity amendments to CAM NC

- Process for the incremental capacity/CAM NC amendment comitology is same as for TAR NC

- MS meeting of 10 – 11 March: EC to come back at April meeting re

  - Order of offer of conditional firm and interruptible capacity after non-conditional firm capacity
  - Extending period for offering incremental (and existing) capacity beyond 15 years
  - Frequency of incremental process
  - Amount of capacity to be set aside in alternative CAM
  - Solutions for booking platform cooperation

- Incremental reality check study (EU-Russia Gas Advisory Council)

  - Groups involved: ENTSOG, Gazprom, IFIEC, IOGP and GIE